Global stocks drop, oil tumbles over fresh Kovid-19 travel restrictions

Global shares declined on Monday and the rapid spread of coronovirus originating from England prompted fresh travel restrictions, giving another blow to prospects for a global economic recovery.

Futures for the S&P 500 dropped 1.9%, pointing to a loss in the opening bell for the benchmark stock gauge, which ended its second highest on record last week. The Dow is set to open more than 500 points. The technology-linked futures Nasdaq-100 index fell 1.3%.

Overseas, European stocks have stopped travelers from the continent of Britain, spreading rapidly in England in an effort to keep out the highly contagious version of coronovirus. Stoxx Europe 600 slipped 2.4%.

“People are preparing themselves for a challenging start to 2021,” said Brian O’Reilly, head of market strategy for Mediolanium International Funds. Stocks can rest in quiet holiday business throughout the year, and data such as restaurant bookings suggest economic activity is already slowing in the US, he said.

Oil prices also backfired with the expectation that new restrictions on European travel and transportation would boost fuel demand in 2021. Benchmark crude futures in the international energy markets declined 5.5% to $ 49.40 a barrel.


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